Governance and Challenges in the Carbon Credit Market: a Comparative Analysis of Industrial Waste and Solid Waste in the State of Rio de Janeiro

Objective: The general objective of this study is to analyze the governance and challenges of the carbon credit market, focusing on the comparison between industrial waste and solid waste in Rio de Janeiro. To achieve this objective, the following specific objectives were established: to examine the history and evolution of the carbon credit market; to analyze the global and Brazilian energy scenario and its impact on the greenhouse effect; to investigate the principles of the Clean Development Mechanism (CDM) and its applications; and to evaluate the management of solid and industrial waste in the context of carbon credit. Theoretical Framework: In the early 1980s, the idea of exchanging the national debt of developing countries as a means of preserving natural resources emerged, establishing a model for carbon credits (Albuquerque et al., 2021). Carbon credits are one of the strategies adopted at national and international level to mitigate the increase in greenhouse gas concentrations in the atmosphere. Method: The methodology adopted for this research involves analyzing the governance and challenges of the carbon credit market, with a focus on comparing the management of industrial waste and solid waste in the state of Rio de Janeiro. Comparative analysis is a central part of the study, which examines the differences and similarities in industrial and solid waste management, with the aim of understanding how these practices impact the carbon credit market. Results and Discussion: The results show that the information presented on urban solid waste management in the state of Rio de Janeiro reveals a challenging scenario that requires coordinated action between the state, municipalities and the various sectors of society. The average generation of solid urban waste per capita is 1 kg per day, totaling approximately 6,596,840.90 tons per year in the state (Inea-RJ, 2023). The inadequate disposal of this waste over the decades has caused environmental, social and economic problems. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of governance in the carbon credit market in the context of solid and industrial waste management in the state of Rio de Janeiro, demonstrates that inadequate waste management has been a challenge, generating environmental impacts and limiting the potential for recovery and reuse of materials. In a scenario where the average generation of urban solid waste per capita is 1 kg per day, totaling approximately 6,596,840.90 tons per year, the implementation of sustainable solutions, such as the creation of a carbon credit market, can offer viable alternatives to mitigate these problems. Originality/Value: This study contributes to the literature as the governance and challenges of the carbon credit market in the context of waste management in Rio de Janeiro reflect the complexity of the interactions between production, consumption and disposal. The implementation of integrated policies and the promotion of sustainable practices are essential to overcome current challenges and create opportunities for economic and environmental development.